The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) is “extremely concerned” that the condition of the local steel industry will continue to worsen in 2018 if the U.S Commerce Department’s recommendation for a tariff of at least 53% on all steel imports from 12 countries – including South Africa – is accepted.

SEIFSA concerned about looming US tariffsThe U.S Department of Commerce and the U.S International Trade Commission (ITC) launched investigations late last year to determine if American producers had been harmed by carbon and alloy steel wire rod imports from Italy, the Republic of Korea, South Africa, Spain, Turkey, Ukraine and/or the United Kingdom. January 2018 saw the U.S. Department of Commerce announcing an affirmative final determination in the anti-dumping duty (AD) investigations of imports of carbon and alloy steel wire rod from South Africa and Ukraine.

The U.S Department of Commerce assigned a dumping rate of 142.26% for the entity composed of ArcelorMittal South Africa, Scaw South Africa, and Consolidated Wire Industries, based on adverse facts available due to these companies’ alleged failure to respond to the Department’s requests for information. The ITC is scheduled to make its final determination this week.

If the ITC makes an affirmative final determination that imports of carbon and alloy steel wire rod from South Africa and/or Ukraine materially injure, or threaten material injury to the domestic industry, the US Department of Commerce will issue anti-dumping orders. Should the ITC make negative determinations of injury, the investigations will be terminated.

According to SEIFSA Chief Economist Dr Michael Ade, although the initial indications were for possible tariff imposition on selected steel products from South Africa, it now appears that the U.S Commerce Department is advocating for the imposition of a blanket tariff on all South African steel exports. “This is really a matter of enormous concern to SEIFSA, since the latest developments have the potential of further dampening production in the local steel industry, reducing steel exports to the U.S, squeezing margins and depriving the steel industry of much-needed foreign reserves. Imports of Carbon and Alloy steel wire rod by the U.S from South Africa is valued at an estimated $7.1 million,” he says.

He adds that the current low domestic growth scenario does not augur well for local steel production. For growth in apparent steel consumption to be sustainable, the overall economy’s GDP has to grow by at least 5% – and the South African economy has not grown at those levels since 2007.

“The high uncertainty in steel production and imported input cost, which is sensitive to exchange rate volatility, is of particular concern. Widespread protectionism of steel products might lead to trade wars and further price spikes in the raw materials used in everything from auto manufacturing to household appliances and construction. Of particular concern has been the high uncertainty in steel production and imported inputs cost, which is sensitive to exchange rate volatility,” Ade says.

“The recent developments in the U.S are of grave concern to SEIFSA, given the strategic importance of the local steel industry. SEIFSA supports any collective initiative aimed at addressing the situation and lessening the effects of a final decision by the U.S Department of Commerce on South African steel producers.”

Image credit: https://www.seifsa.co.za/about/team-seifsa/


African Fusion

AfricanFusionAfrican Fusion, the official publication of the Southern African Institute of Welding (SAIW), aims to provide up-to-date insight into welding technology and the welding industry.

Capital Equipment News

Capital Equipment News is dedicated to the application of equipment and modes of transport that are used in the mining, construction, quarrying, and transport industries.

Construction World

ConstructionWorldConstruction World was first published in 1982 and has grown to become a leader in its field, offering a unique mix of editorial coverage to satisfy the diverse needs of its readers.

Electricity + Control

ElectricityandControlE + C publishes innovative, technical articles that provide solutions to engineering challenges in measurement, automation, control, and energy management.

Lighting in Design

LightingandDesignLighting in Design is a glossy, upmarket publication aimed at lighting professionals. It is the only B2B magazine in SA that is dedicated solely to the subject of lighting.

MechChem Africa

MechChemJanuary2017cover MechChem Africa supports African engineering and technical managers across the full spectrum of chemical and mechanical disciplines.

Modern Mining

ModernMiningEstablished in 2005, Modern Mining is one of SA's leading monthly mining magazines, noted for the quality and accuracy of its writing and the breadth of its coverage.

Modern Quarrying

ModernQuarryingModern Quarrying is firmly entrenched as a leading industry-specific magazine. It focuses on promoting the science and practice of quarrying and processing in southern Africa.

Sparks Electrical News

SparksElectricalNewsReadable and informative, Sparks Electrical News is the newspaper for those involved in installing and maintaining electrical supplies and equipment.

Full Name*
Invalid Input

Company Name*
Invalid Input

Your Email*
Invalid Input

Invalid Input

Postal Address 1*
Invalid Input

Postal Address 2*
Invalid Input

Postal Code*
Invalid Input

Street Address 1
Invalid Input

Street Address 2
Invalid Input

Postal Code
Invalid Input

Town / City*
Invalid Input

Invalid Input


Invalid Input

Invalid Input